3 pillars of Switzerland: Plan your pension correctly

Swiss pension provision is based on the proven 3-pillar system, which is intended to ensure security and financial stability in retirement. But many are faced with the challenge of planning the payout of their retirement capital wisely. Particularly in the case of the second pillar — occupational benefits — retirees must decide whether to receive the capital as a lump sum or have it paid out as a pension.

This decision has far-reaching consequences for financial security in old age, tax burdens and individual wealth planning. That is why a strategic approach is essential — and this is exactly where a professional comes in asset management that optimally takes your personal goals into account and protects and increases your capital in the long term.

An overview of the most important things:

● Payout as a turning point: When you retire or draw your pension capital from the 2nd or 3rd pillar, you will suddenly receive a large sum of money — with long-term consequences for your financial security.

● Installation instead of parking: Simply leaving the capital in the account involves risks: inflation, opportunity costs and a lack of structure. Those who invest wisely secure purchasing power and create new freedom.

● Professional asset management helps: With an individual investment strategy, tailored to life stage, tax structure and personal goals, capital is converted into sustainable wealth creation.

● Tax and strategic benefits: Early planning with an independent partner can not only optimize earnings, but also create tax-advantageous structures.

● Mastering complexity: Whether it's partial retirement, graduation, capital vs. pension or inheritance issues — professional advice provides clarity and protects against wrong decisions.

Overview of the 3 pillars of Swiss retirement planning

The Swiss pension system is based on three pillars, which together ensure comprehensive financial security in old age. Each pillar fulfils a specific function: from basic insurance to voluntary private pension provision. The following table clearly summarizes the key features, objectives and financing of these three pillars.

1st pillar (AHV)

· Objective: Basic subsistence allowance

· Funding: Contributions from employees and employers as well as the federal government

· Payment method: Lifetime pension

2nd pillar (BVG)

· Objective: Supplementary pension provision to the usual standard of living

· Funding: Occupational pension contributions from employees and employers

· Payment method: Pension or lump-sum withdrawal

3rd pillar

· Objective: Voluntary private pension provision with tax benefits

· Funding: Your own deposits in Pillar 3a/3b

· Payment method: Flexible payout depending on contract

Payout of the 2nd pillar: one-off payment or pension?

If you have the option of receiving your occupational pension (2nd pillar) as a one-off payment or as a pension, the question is: What is the best decision for your financial future? A one-time payment offers high liquidity in the short term, but carries the risk of rapidly losing capital due to incorrect decisions or inflation. A pension, on the other hand, ensures a reliable, life-long payment, but is less flexible.

This is where independent asset management comes in: With professional expertise, you can develop a tailor-made strategy that is precisely tailored to your individual goals and personal situation. Whether capital preservation, sustainable growth or tax optimization — an experienced asset manager helps you to invest the payout of your 2nd pillar wisely and secure it in the long term.

Don't just rely on standard solutions, but take advantage of the benefits of independent asset management to exploit the full potential of your pension assets.

Capital from the 2nd pillar: How to use your money correctly

If you don't invest the inherited assets, inflation causes them to lose purchasing power continuously. Without a well-thought-out investment strategy, you risk that your inheritance will shrink in value rather than grow.

Classic bank deposit

• advantages: High level of security, immediately available
• Disadvantages: Low to no return, loss of purchasing power
• Suitable for: Very conservative investors

real estate investment

• advantages: Tangible value, inflation protection, tax benefits
• Disadvantages: High barriers to entry, lower liquidity
• Suitable for: Investors with a long-term focus

Broad equity funds

• advantages: Good return opportunities, diversification
• Disadvantages: Market risk, fluctuations possible
• Suitable for: Risk-ready investors with long-term horizons

Sustainable investments

• advantages: Combining responsibility with returns
• Disadvantages: It is necessary to select the right products
• Suitable for: Investors focused on sustainable investments

Independent asset management

• advantages: Individual strategy, transparent costs, risk management
• Disadvantages: Higher costs than pure DIY strategies
• Suitable for: Investors who want professional support and optimization

With independent asset management, you ensure that your capital is not only securely parked, but is actively and intelligently managed. In this way, you can protect and even increase your payout from the 2nd pillar in the long term — tailored to your personal life situation.

Responsibility begins after payment: How to invest your pension assets correctly

When your pension assets are paid out from the 2nd or 3rd pillar, a new financial reality begins: You have a considerable sum of money — but no more monthly payments. The capital must now be used strategically for the coming years.

Many simply leave the money in a savings account due to uncertainty. But that is exactly what is risky: Inflation eats up purchasing power, while important return opportunities remain unused. There are also tax issues and the challenge of finding the right investment strategy for your own phase of life.

One professional asset management can make the decisive difference here. It helps to define clear goals, develop a tailor-made investment strategy and avoid mistakes that could otherwise be expensive.

Tip: Don't simply park your capital in the account

Anyone who “parks” their disbursed pension assets for months loses value in real terms. Even short delays can cost thousands of francs. The best strategy starts before the payout — with independent, professional advice.

Frequently asked questions about inheritance and asset management

When is professional asset management worthwhile when retiring?

Shonab CHF 500,000 Payout capital can bring considerable added value through individual advice and asset management in order to optimally structure and protect your capital.

What are the tax advantages of targeted wealth planning?

With a professional strategy, you can minimize tax burdens, for example through staggered payouts or clever distribution between capital and pension withdrawals.

Can I also have part of my pension capital paid out?

Yes, in many cases, a combination of partial capital withdrawal and partial pension is also possible. This requires careful planning to ensure your long-term financial security.

How can I protect my pension capital from inflation?

Purchasing power can be maintained through a diversified investment strategy that also includes tangible assets and inflation-protected investments.

Invest pension capital? Get personal advice

Take advantage of the opportunity to plan your pension optimally — with an experienced, independent asset manager near you. Our experts in zurich, St. Gallen, basle and luzern provide you with competent and personal support with all questions relating to your retirement planning and asset management.‍

Schedule yours now free and non-binding initial consultation - so that you can enjoy the retirement you deserve with your pension capital.

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